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CIMA CIMAPRO15-E03-X1-ENG Exam Syllabus Topics:

CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.
Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

A) Measures of organization's use of non-renewable resources and environmental emissions.
B) Providing financial information with all non-recurring expenditures and incomes removed.
C) Project evaluations that include the externalities as well as the cash costs.
D) Ensuring the organization adopts the lowest cost technologies and suppliers.
E) Integrated reporting of the triple bottom line of Profits, People and Planet.

2. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams that cross departmental boundaries can develop new performance criteria.
B) Teams enhance learning and address change directly through creating recommendations and new ideas.
C) Teams that cross departmental boundaries can destroy shared values.
D) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
E) Teams should continue after their purpose has been served.
F) Teams play minor roles in institutional change.

3. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)

A) CRM utilizes marketing resources to retain, rather than simply attract new customers.
B) The company must be prepared to take customers' needs into account and be able to meet these needs.
C) The CRM process needs to include increasing the range of products that will be offered to customers.
D) In mature markets, existing customers provide the most likely source of future earnings.
E) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.

4. JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

A) JJJ should unfreeze current habits and standard operating procedures.
B) JJJ should convince staff of the benefits of sharing their tacit knowledge.
C) JJJ needs to acquire and install appropriate hardware and software.
D) JJJ should integrate knowledge management and management accounting.
E) Z should gain the support of the Board of Directors.
F) Z should set a target for reported profit.

5. BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

A) A substantial rise in the price of oil.
B) A shortage of trained pilots in BCA.
C) A higher level of private car ownership.
D) A sudden increase in international terrorism.
E) Greater popularity of long-haul holidays.

Solutions: